THESIS

IDENTIFYING THE MAIN FACTORS AND EFFECTS OF DELAYS IN

INTERNATIONAL FUNDING PROJECTS IN YOGYAKARTA FOR

BETTER ELABORATION OF PLANNING SEQUENCES

ARMELLA MIARIAMBININA RABEARITSOA

Nb.: 135101976/PS/MTS

MASTERS IN CIVIL ENGINEERING

CONSTRUCTION MANAGEMENT

UNIVERSITAS ATMA JAYA YOGYAKARTA

2015

To my beloved parents

i

ABSTRACT

The construction industry plays an important role in the economy. It brings

contribution to the competitiveness and prosperity of the economy. However as one

of the most dynamic and challenging business, it could be the most risky and costly to

all the parties working on the project therefore it should not be neglected. In fact it

may cause a dramatic financial loss. Despite the existence of various control

techniques of managing in construction industry, many projects still do not achieve

on time. For that reason this study was accomplished to determine the main factors of

delays in international funded projects in Yogyakarta .This study was based on

literature review and a questionnaire survey that was distributed to 30 respondents.

This research was also conducted to result in achieving an appropriate use of tools in

time management and in establishing a better plan sequence of work.

KEYWORDS: Delay, Contract, Management, Plan, Yogyakarta

ii

ABSTRAK

Konstruksi industri memainkan peran penting dalam perekonomian. Ini membawa

kontribusi terhadap daya saing dan kesejahteraan ekonomi. Namun sebagai salah satu bisnis

yang paling dinamis dan menantang, hal ini bisa menjadi sangat berisiko dan mahal untuk

semua pihak yang bekerja pada proyek, oleh karena itu konstruksi tidak boleh diabaikan.

Bahkan dapat menyebabkan kerugian keuangan dramatis. Meskipun sudah ada berbagai

teknik pengendalian pengelolaan dalam konstruksi industri, banyak proyek yang masih tidak

selasai tepat waktu. Untuk itu penelitian ini dilakukan agar menentukan faktor utama

keterlambatan dalam proyek-proyek yang didanai internasional dalam penelitian di Kota

Yogyakarta. Ini didasarkan pada tinjauan literatur dan kuesioner yang dibagikan kepada tiga

puluh (30) responden. Penelitian ini juga dilakukan untuk menghasilkan pencapaian

penggunaan alat yang tepat dalam manajemen waktu dan membangun urutan rencana kerja

yang lebih baik.

iii

ACKNOWLEDGEMENT

To start this thesis I am grateful to the God for the good health and wellbeing that

were necessary to complete this book.

I place on record, my sincere thank you to the program Kemitraan Negara

Berkembang (KNB) for the support.

I wish to express my sincere thanks to Dr. Ir. Imam Basuki, MT., Head of the Faculty

of Civil Engineering, for providing me with all the necessary facilities for the

research.

I would especially like to thank my supervisor Ir. A. Koesmargono, M. Const. Mgt.,

PhD, for his guidance, criticism, unforgettable helpfulness, encouragement and

valuable insight during the entire study. It has been a great pleasure and honor to

work with him. I would also like to thank the examining committee members, for

their invaluable ideas.

I take this opportunity to express gratitude to all of the Department faculty members

for their help and support. I also thank my parents for the encouragement, support and

attention.

I also place on record, my sense of gratitude to one and all, who directly or indirectly,

have lent their hand in this venture.

iv

CONTENTS

ABSTRACT ...................................................................................................................................... i

ACKNOWLEDGEMENT ............................................................................................................... ii

LIST OF TABLES ........................................................................................................................ viii

LIST OF FIGURES ......................................................................................................................... x

LIST OF SYMBOLS ...................................................................................................................... xi

LIST OF APPENDICES ................................................................................................................ xii

CHAPTERS

1. INTRODUCTION ................................................................................................................... 1

1.1. Introduction ...................................................................................................................... 1

1.2. Problem statement ............................................................................................................ 2

1.3. Purpose of the study ......................................................................................................... 4

1.4. Scope of study .................................................................................................................. 5

2. LITERATURE REVIEW ........................................................................................................ 6

2.1. Introduction ...................................................................................................................... 6

2.2. Fundamentals of construction contracts ........................................................................... 6

2.2.1. Contractual Risk ....................................................................................................... 7

2.2.2. Extension of time ..................................................................................................... 7

2.3. Construction schedule delays ........................................................................................... 8

v

2.3.1. Types of delays ........................................................................................................ 8

2.3.2. Causes of delay ...................................................................................................... 14

2.3.3. Effects of delays in construction ....................................................................... - 17 -

2.4. Methods of Delay Analysis ....................................................................................... - 18 -

2.5. Planning sequences in construction industry ............................................................ - 19 -

2.6. Methods of minimizing construction delays ............................................................. - 20 -

3. METHODOLOGY OF RESEARCH................................................................................ - 21 -

3.1. Introduction ............................................................................................................... - 21 -

3.2. Type of Methodology ............................................................................................... - 21 -

3.3. Population and samples ............................................................................................. - 22 -

3.3.1. Population ......................................................................................................... - 22 -

3.3.2. Sampling ........................................................................................................... - 22 -

3.4. Data collection .......................................................................................................... - 23 -

3.4.1. Questionnaire .................................................................................................... - 23 -

3.4.2. Observation ....................................................................................................... - 25 -

3.4.3. Literature review ............................................................................................... - 25 -

3.5. Data analysis approach ............................................................................................. - 25 -

3.5.1. Importance index .............................................................................................. - 25 -

3.5.2. Kendall‟s W test ................................................................................................ - 26 -

3.5.3. Spearman‟s rank correlation ............................................................................. - 27 -

vi

3.5.4. Multiple response analysis ................................................................................ - 27 -

3.6. Research methodology .............................................................................................. - 28 -

4. ANALYSIS AND DISCUSSIONS .................................................................................. - 29 -

4.1. Introduction ............................................................................................................... - 29 -

4.2. Respondent background results ................................................................................ - 29 -

4.3. Analysis of Results ................................................................................................... - 32 -

4.3.1. Frequency and severity of delay causes ............................................................ - 33 -

4.3.2. Ranking of sources (Groups) of delays ............................................................. - 42 -

4.3.3. Ranking of factors that causes delays ............................................................... - 46 -

4.3.4. Spearman rank correlation coefficient .............................................................. - 51 -

4.3.5. Factors of Related Delays for each group ......................................................... - 52 -

4.3.6. Effects of construction delays ........................................................................... - 63 -

4.3.7. Methods of time-risk management ................................................................... - 65 -

4.3.8. The master schedule .......................................................................................... - 72 -

4.4. Discussion of results ................................................................................................. - 83 -

4.4.1. Main causes of delays in Yogyakarta................................................................ - 83 -

4.4.2. Effect of delays construction............................................................................. - 87 -

4.4.3. Discussion of the results of tools in time management ..................................... - 89 -

4.4.4. Discussion of the results of planned sequence .................................................. - 90 -

vii

CONCLUSION ......................................................................................................................... - 91 -

REFERENCES ......................................................................................................................... - 94 -

APPENDIX ............................................................................................................................... - 98 -

viii

LIST OF TABLES

Table 4-1: Questionnaire Distribution and Responses ...................................................... - 30 -

Table 4-2: Respondent position in the organization ......................................................... - 30 -

Table 4-3: Year of experience of the respondents ............................................................ - 31 -

Table 4-4: Number of project involved by the respondents .............................................. - 31 -

Table 4-5: Number of project delays which is faced by respondents ............................... - 32 -

Table 4-6: List of causes of delay categorized into nine groups ....................................... - 33 -

Table 4-7: Frequency of delay causes according to contractors and consultants .............. - 36 -

Table 4-8: Frequency of overall ........................................................................................ - 38 -

Table 4-9: Degree of Severity according to contractor and consultants ........................... - 39 -

Table 4-10: Degree the severity of overall ........................................................................ - 41 -

Table 4-11: Ranking of sources (groups) of delay by contractor ...................................... - 43 -

Table 4-12: Ranking of sources (groups) of delay by consultant ..................................... - 44 -

Table 4-13: Ranking of sources (groups) of delay by all parties ...................................... - 45 -

Table 4-14: Importance Index of overall according their ranking .................................... - 47 -

Table 4-15: Spearman rank correlation coefficient between contractor and consultant ... - 51 -

Table 4-16: The result of factors of project related delays ............................................... - 53 -

Table 4-17: The result of factors of owner related delays ................................................ - 54 -

Table 4-18: The result of factors of contractor related delays .......................................... - 55 -

ix

Table 4-19: The result of factors of consultant related delays .......................................... - 57 -

Table 4-20: The result of factors of Design related delays ............................................... - 58 -

Table 4-21: The result of factors of materials related delays ............................................ - 59 -

Table 4-22: The result of factors of equipment related delays .......................................... - 60 -

Table 4-23: The result of factors of Labors related delays ............................................... - 61 -

Table 4-24: The result of factors of external related delays .............................................. - 62 -

Table 4-25: Results of effect of delays ............................................................................. - 64 -

Table 4-26: Frequency of respondents of the section D in the questionnaire ................... - 66 -

Table 4-27: Results of Kendall‟s W for data on procurement methods used ................... - 67 -

Table 4-28: Results of Kendall‟s W for data on time management methods used ........... - 69 -

Table 4-29: Type of tool used for time management ........................................................ - 71 -

Table 4-30: Notification of delay in construction ............................................................. - 73 -

Table 4-31: The method of establishing the planned activity durations ........................... - 76 -

Table 4-32: Parties usually involved in drafting method .................................................. - 78 -

Table 4-33: The results of logic to the planned activities ................................................. - 80 -

Table 4-34: The use of date constraints in the construction schedule ............................... - 82 -

x

LIST OF FIGURES

Figure 2-1: Project Delays Classification ................................................................................ 9

Figure 2-2: Delay Categories ................................................................................................. 11

Figure 2-3: Factors of delays in construction project ........................................................ - 16 -

Figure 2-4: As-planned and As-built schedule ................................................................. - 19 -

Figure 3-1: A Flow Chart of Research Methodology ....................................................... - 28 -

Figure 4-1: Results ranking of sources (groups) of delay by contractor ........................... - 43 -

Figure 4-2: Results ranking of sources (groups) of delay by consultant ........................... - 44 -

Figure 4-3: Ranking of sources (groups) of delay by overall ........................................... - 45 -

Figure 4-4.: The Common Effects of Delays .................................................................... - 65 -

Figure 4-5: Method of contract procurement .................................................................... - 68 -

Figure 4-6: Method of time management ......................................................................... - 69 -

Figure 4-7: Type of tool used for time management ......................................................... - 71 -

Figure 4-8: The parties to whom notice of delay to progress is given .............................. - 74 -

Figure 4-9: Establishment of planned sequence of work .................................................. - 77 -

Figure 4-10: Establishment of planned sequence of work ................................................ - 79 -

Figure 4-11: Application of logic to the planned activities ............................................... - 81 -

Figure 4-12: Results of the percentage of use of date constraints ..................................... - 82 -

xi

LIST OF SYMBOLS

FI - Frequency of Occurrence Index

i - Response category index = 1, 2, 3, 4

IMP.I - Importance Index

SI - Degree of severity index

Rs - Spearman‟s Rank correlation

xii

LIST OF APPENDICES

APPENDIX TITLE PAGE

A Questionnaire Form 99